5 Factors Self-Employed People Should Consider About Buying Their First Home
Are you self-employed and planning to buy your first house?
Well, first of all, congratulations, as you are about to realize a dream many have. Buying a house can be such a daunting process for anyone. If you are self-employed, you may face even more challenges with loans and deductions. It also requires a lot of paperwork, including letters, tax forms, and licenses. But, don’t fret yet. Here are a few factors to consider, making the process of acquiring your first home as a self-employed individual less stressful:
Being self-employed comes with irregular pay. Before getting tempted by all the beautiful listings, pick a house you can afford now, and not later. Don’t let you first dream home become more of a worry than an escape. Keep in mind that there are several hidden costs that come with purchasing a house. So, make a budget that allows you to comfortably enjoy your new home.
Choosing the perfect house depends on your lifestyle and future expectations. Pick a location closer to your workplace to save money on the little business expenses like commuting. What other amenities are important to you? It could be safety, grocery stores, public transit access, shopping, or schools if you have kids. Bear in mind that your house does not exist in a bubble, so, do enough research and find a neighbourhood that suits you. You can also use the planning portal site to check out the area’s future development.
The trick to finding the perfect home is determining the amount of space you need, which could be influenced by the size of your family and your future plans. If you plan on expanding your family, go for a slightly bigger house to grow into. If you have or plan on having pets, then you’ll need a house with a big backyard and probably a fence. But, don’t go overboard with the size as it comes at larger costs.
One of the most significant expenses that come with owning a home is homeowners insurance. There are several reasons why it’s an important protection for any homeowner. For starters, it protects your most valuable asset (your home) and its contents against unknown risks, plus your lender may require it before financing your home. Home insurance is not a one-size-fits-all; therefore, talk to an agent at One Sure Insurance to help you understand what coverage options best suit your needs.
While often overlooked, duration of stay is an important factor to consider when buying a house. Ideally, it takes about four to seven years to break even on a home. Picture your life situation in over 10 years and see if the house you are getting will fit into that picture. Every long-term dream home requires a bit of customization. It could be a chef-style kitchen or a poolside backyard oasis. Chances are these features may not be to your specification, so, choose a house you can handle turning into a dream home.
Buying a house is like any other investment, therefore, it’s imperative to understand the best time to make a purchase if you want to maximize your returns or the growth value of your home. First-time homebuyers should go house hunting during peak inventory season, which is usually in the spring or summer; but wait to buy during quieter times. The only downside to this is there could be fewer options to choose from.